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Business Acquisitions
6 Months Ended
Jun. 30, 2011
Business Acquisitions Disclosure [Abstract]  
Business Acquisitions Disclosure

4.       BUSINESS ACQUISITIONS

 

NaviSite Acquisition

 

On April 21, 2011, TWC completed its acquisition of NaviSite for $263 million, net of cash acquired. At closing, TWC also repaid $44 million of NaviSite's debt.  NaviSite's financial results have been included in the Company's consolidated financial statements from the acquisition date and did not significantly impact the Company's consolidated financial results for the three and six months ended June 30, 2011.

 

As part of the purchase price allocation, TWC recorded goodwill of $142 million and allocated $63 million to property, plant and equipment (e.g., computer hardware) with depreciation periods ranging from two to four years and allocated $56 million to intangible assets subject to amortization (e.g., customer relationships, trademarks and developed technology) with amortization periods ranging from four to seven years. The purchase price allocation is preliminary subject to completion of a third-party valuation report and primarily used a discounted cash flow approach with respect to identified intangible assets and a combination of the cost and market approaches with respect to property, plant and equipment. The discounted cash flow approach was based upon management's estimates of future cash flows and a discount rate consistent with the inherent risk of each of the acquired assets.

 

Cable System Acquisition

 

In June 2011, TWC entered into an agreement with NewWave Communications to acquire certain cable systems in Kentucky and western Tennessee serving roughly 130,000 primary service units for approximately $260 million in cash. The transaction, which is subject to certain regulatory approvals and customary closing conditions, is expected to close in the fourth quarter of 2011.